Washington’s debt-ceiling drama seems to produce a new proposed plan every day. But for what it’s worth, both of Connecticut’s U.S. senators are on board with the latest solution, put forward by Senate Majority Leader Harry Reid.
Reid’s plan would raise the debt ceiling by $2.7 trillion and cut federal deficits by the same amount–$2.7 trillion–over the next decade. Some of the spending reductions would come from cutting farm subsidies and putting broad new spending caps in place.
The most contentious element of his plan assumes about $1 trillion in savings over the next decade from winding down the wars in Iraq and Afghanistan. Those savings are already in the White House budget for 2012, so some see it as a gimmick because it’s not new spending reductions.
Reid’s plan would also set up a congressional committee to come up with a broader debt-reduction package, which could tackle tax and entitlement reform.
Sen. Richard Blumenthal, D-Conn., said the “Reid plan looks like the most acceptable option right now given that we need to cut spending and be responsible in raising the debt ceiling.”
Sen. Joseph Lieberman, a Connecticut independent, said he would back Reid’s plan because it has at least $1.2 trillion in “real cuts,” even if other savings are a little squishy. And by creating a new fiscal reform committee, he said, the measure could bring about long-term spending reform.
“It’s a step forward,” Lieberman said. “While it’s not perfect, I’d vote for it.”